Amazon is shaking AND stirring the entertainment industry with its reported pursuit of MGM, the famed Hollywood studio whose assets include the James Bond franchise.
The e-tailer giant is eager to join the contentious battle for streaming consumers.
The asking price is likely in the $8 billion neighborhood, with the top end of the range reported by The Information north of $10 billion.
That’s a big chunk, but then Amazon’s current market cap is nearly $1.7 trillion.
Amazon’s pursuit of a company to boost its streaming capability is reported to have been in the works for quite a while. In 2018, Bloomberg said Amazon sought to buy Landmark Theaters, a specialty cinema chain, and the Daily Mail tied Amazon to a possible deal with AMC Theaters last year.
Amazon’s Prime Video, meanwhile, already can host MGM’s films and TV projects.
“The Marvelous Mrs. Maisel” and “Jack Ryan” are among the Prime Video offerings, and Prime Video is virtually ubiquitous – available via Amazon’s “Prime” package (for a yearly price) that offers faster product delivery options as well as other benefits.
Prime now has more than 200 million paid subscribers, the company revealed during its most recent earnings report.
Proving that Amazon, via Prime Video, is hurtling into the streaming wars: Its new offering, set in the “The Lord of the Rings” universe, is reportedly costing $465 million for a single season.
MGM’s assets include Oscar-winning movies such as “Rocky,” “Dances with Wolves” and “Rain Man,” streaming stars such as “The Handmaid’s Tale” and “Vikings” and TV shows including “Shark Tank.”
Monday, AT&T announced that its WarnerMedia will merge with Discovery, bringing HBO, Warner Bros., HGTV and Food Network all together.
Netflix isn’t going away, either, investing billions more into streaming. And Disney+ has reportedly surpassed 100 million subscribers in its first year.